Dick's Sporting Goods stock sprinted to an all-time high price in August and it continues to trade near that level.
On Dec. 27 the IBD Relative Strength (RS) Rating for Dick's stock got an upgrade from 78 the day before to 82, passing a milestone along the way. By New Year's Eve its RS Rating had climbed to 85, according to MarketSurge chart analysis.
Dick's Sporting Goods Prepping For Breakout?
The raised 85 RS Rating shows that Dick's is in the top 15% of stocks for price performance this past year. Market history shows that the stocks that go on to make the biggest gains often have an RS Rating north of 80 as they launch their biggest price moves.
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Dick's Sporting Goods is trying to complete a consolidation with a 239.30 entry. That's the record high it set on Aug. 23. See if it can break out in heavy volume. Tuesday afternoon Dick's closed at 228.84, down for the day, but up 10.4% in the last month.
Among its other ratings Dick's has an 88 EPS Rating, putting it in the top 12% of stocks for recent and long-term profit growth. Its Composite Rating is a decent 84 and it has a B- Accumulation/Distribution Rating on an A+ to E scale. The B- rating shows that funds are buying more of its shares than selling.
Additionally, the number of funds that own Dick's stock rose from 1,1185 in the March-ended quarter to 1,376 in June and 1,451 in September, a bullish indicator.
Fundamentals Erratic But Fundamentally Strong
Dick's growth has been erratic but overall strong lately. Its EPS fell 4% to $2.75 last quarter on flat revenue growth at $3.06 billion. The prior three stanzas its earnings grew 31%, -3% and 55%. Sales rose 8%, 6% and 8%.
Dick's Sporting Goods earns the No. 2 rank among its peers in the 13-stock Retail-Leisure Products industry group. Build-A-Bear Workshop is the No. 1-ranked stock in the group.
IBD's unique Relative Strength Rating tracks market leadership by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database.
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